Goldman's Take On The Imminent German EFSF Vote

Tyler Durden's picture

Here is Goldman's Dirk Schumacher chiming in with his views on the German EFSF vote expected in 50 minutes, although which is now likely to take place at noon central European due to lengthy monologues in the German parliament.

 Bundestag to vote on EFSF expansion this morning. The vote will take place around 11:00 CET. After a test vote among coalition MPs it now seems that Chancellor Merkel can rely on a majority from within her own ranks. This would be an important signal, showing that Merkel indeed does have the necessary support for her course among coalition MPs.

Finance minister Schäuble stressed again this morning in a radio interview that the "EFSF will be used as efficiently as possible". When asked whether this could imply leveraging up the guarantees provided to the EFSF, Schäuble said "what the future brings no one can say". However, he also stressed that any further expansion would need the approval of the Bundestag.

The head of the CSU, at the same time, warned against any further increase of the EFSF. Speaking in an interview with Süddeutsche Zeitung Seehofer said that "up until here and no further" and that "the end is reached once the credit rating of Germany would suffer".

SPD fiscal expert Schneider demanded that finance minister Schäuble should "give account" in the Bundestag if the increased EFSF would still be insufficient in size. Schneider referred to the IMF's latest Financial Stability Report saying that EU banks would need €300 billion in additional capital due to the debt crisis. Note, however, that the IMF says that the calculations in the stability report are not a stress test but rather measure "spillovers" from peripheral countries to the EU banking system and that "determining capital needs would call for a fully fledged stress test". In fact, reading the stability report it is not clear to us how to interpret this €300 billion figure.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Cassandra Syndrome's picture

Thanks, but the cognitive process of Germans speaking in a parliament made me hide behind the couch.

Edward Fiatski's picture

Wow, that iron eagle in the middle of assembly - sieg heil!

Cassandra Syndrome's picture

Subtle... You would think someone might have mention this to the interior designer at the time. "Em, that Iron eagle in your plan, might be a little bit, you know..."

Edward Fiatski's picture

The finmin of Germany is invoking the Spirit of Hitler right now.

P.S. What a minimalistic approach to design of the assembly: I understand, German slaves have no real parliament, no democracy; nothing depends on their vote. Still, they are numerous, and rebellion is not welcome, thus they get this little circus.


zilverreiger's picture

whats wrong with the minimalist design, where the people are the centre of attention, it looks solid to me, their parliament is a pretty building too, its a multi story round glass beehive.


what do you mean no real parliamanet? they have as much power as parliaments worldwide do.


Edward Fiatski's picture

Really? They bend over and take the cock, when it comes to non-municipal matters.

Have you seen German porn? I recomment the movie "Batfuck".

falak pema's picture

The cock that crowed in babylonian...Batfuck ist gut fur for the plumbing. In France all plumbers are now Poilsh. Thats the new Europa of the leaning tower, cleaning shower. No more Turkish toilets in Europa. We will all be Greeks and dump in the sea.

I find this iron maidchen eagle thread mind boggling, I'm waffling. I need good chardonnay. And the dialogue on this thread has to improve or move.

Ghordius's picture

see my comment below - it's the same building that got partially burned down by Hitler's goons so that they could blame the communist jews, all the new stuff is glass and steel to better see the historic building

Real Parliament? Just note how many times the non-German press made fun of the German Government always careful not to do "something right" because of fears of losing the next election in one of the Bundesländer? How more democratic can you get?

Ghordius's picture

Edward FiatskiCassandra Syndromeyou are so cute in your ignorance

"that iron eagle" is, properly speaking, over 2000 years old

the eagle was first introduced by general MARIUS as a symbol of the roman legions

it became the symbol of the Roman Republic, then of the Roman Empire

Charlemain adopted it as the symbol of the Holy Roman Empire

Imperial Russia adopted it too - now it's the symbol of the Russian Federation

The american colonies adopted as THE SYMBOL OF THE USA, IN REMEMBRANCE OF THE ROMAN REPUBLIC, with other symbols like the CAPITOL, etc.

the Germans readopted it as a symbol of the German Empire and readopted again as a symbol of Nazi Germany

the German Federal Republic readopted it again as a symbol of reunification with East Germany

the Germans call this specific iron eagle since the first time it was erected (around 1949) as the PLEITEGEIER, i.e. the "CARRION BIRD OF DEFAULT", TODAY THIS IS THE REAL JOKE


the minimalistic design is because above in the building called "Reichstag" you have a glass dome where visitors can "look through" - this minimalist approach is designed to emphasize "TRANSPARENCY"

Edward Fiatski's picture

The Eagle is great by itself, so is the five-pointed star on each and every flag, insignia and coat of arms, but the German design hasn't changed since the Nazi years.

Ghordius's picture


that particular eagle was specifically designed NOT to look like the Nazi Eagle, which was specifically designed to look a bit more like the Italian Fascist Eagle, which was specifically designed to look more serious than the previous versions.

Have a look at the Austrian Eagle, complete with Hammer and Sickle and broken chains to simbolize the popular revolution - it's the "original" Holy Empire Eagle which you will find on nearly every historic building in the former HRE, even in Italy, parts of France, Poland, Austria, Switzerland, etc.

Edward Fiatski's picture

I don't care for your respective Nationalist states, what we're building in Europe is the Tower of Babylon, something far greater than the Roman Empire.

falak pema's picture

Colossus of Rhodes? Leaning tower of Pisa? Lighthouse of Alexandria? All phallic. That's why they fascinate Merkel.

Ghordius's picture

is this one of those non-arguments about nation-states having to be "proper", i.e. one race, one territory, one language, one currency, one set of laws, etc?

Edward Fiatski's picture

As you know, one territory - no borders has been effectively implemented, language - this one is a bit tricky due to the French and Germans still refusing to learn the English language (LOL); other smaller countries in Europe present a lesser problem in this aspect. One currency - it's there, it may reach parity with the USD, so be it - everyone nowadays has to compete with 2 billion of slave labour on this planet, might as well devalue, but preserve it.

Set of laws... ah yes, the final implementation comes with the introduction of a cashless currency, a biometrics ID (finger prints, iris scans and possibly DNA data).

One race - this one is ensured by the open borders and free-flow and movement of people on the European sub-continent; a mixed race by the 2100s.

Sieg heil, bitches. :)

fishface's picture

The Nazi symbol was the Swastika

falak pema's picture

Battle of Tuetoburg Forest, 9 BC...the Lost three legions of Varus. "Where are my golden eagles?" Raged a lost soul in his imperial palace. The birth of the German nation. Arminius, who later died after defeats at Germanicus's hands.

French Frog's picture

Edward Fiatski, Cassandra Syndrome, you are so cute in your ignorance

One could not have put it more politely lol

Fips_OnTheSpot's picture

Green's Trittin just said: "this is not a souverign debt crisis" - WTF?

gojam's picture

I'm pinning my hopes on the Dutch.

zilverreiger's picture

better dont do that, we always do what germany or america do

Mongo's picture

They call it a vote? The crap has already been decided by the elite running the show.


Go back to work debt slaves!

falak pema's picture

Liesman rumor mill and Germany's kaput deutschlander phobia mill. 

"Schon wieder neue Schuhe! Warum wirfst du dein Geld zum Fenster hinaus? Du musst doch sparen."

"Another pair of new shoes. Why do you put your money down the drain? You have to save"....AKA...

"We'll all go slowly down the drain if Deutschland takes the EFSF train." DAS GELD ZUM FENSTER HINAUSWERFEN pour money down the drain

Vote and pray...that Merkel be Bismarck's girl. 


Hman's picture

Time for the stooges to put on an act ....

Fips_OnTheSpot's picture

Questioned about leveraging the EFSF, Schaeuble says: Leveraging would need another vote by Bundestag. I wonder how long that will last.

EDIT: and "the E211bn from Germany will be enough" O'rly?

EZYJET PILOT's picture

Never mind a vote by the German elite, where is the vote by the German people! This profoundly reshapes the German constitution and they are leaving this up to a few bought and paid for politicians, what the hell is going on! If this goes through they should storm the German parliament.


The pertinent bit from the article,

The other problem is whether or not the German government can actually get this solution passed.   This out of Germany this morning "Andreas Vosskuhle, head of the constitutional court, said politicians do not have the legal authority to sign away the birthright of the German people without their explicit consent.  He stated that 'The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution),'  There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit – which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people, he told newspaper Frankfurter Allgemeine."

Therefore, if the expansion of the EFSF, including the SPV, isn't legal from a German perspective without a formal vote of the people, then this deal is most likely dead before it starts.  If that is the case then the markets are in for a lot of trouble and most likely soon.  Again, this sounds a LOT like what the UK government said to Barclay’s when they wanted to buy Lehmann. Is this sounding more and more familiar? Are you getting as worried as I am?

Ned Zeppelin's picture

Germans will approve and equities will, to steal a phrase, "soar." Like an eagle.  Crisis over.  

For now. Buy the gold dip and sit back.  You've got more time to prepare. 

fishface's picture

Germans will approve and equities will, to steal a phrase, "soar." Like an eagle.

and then they crash and burn like a Zeppelin  ;-)